Meesho Cuts Q2 FY27 Losses by 68% as Revenue Climbs 34%

Meesho reported a sharp improvement in its financial performance for the second quarter of FY27, reducing its net loss by 68% year-on-year while recording a 34% increase in revenue. The ecommerce marketplace also saw growth in its customer base, seller network and shopping activity during the quarter.

For the three months ended September 2026, Meesho posted a net loss of Rs 132.44 crore, down from Rs 411.36 crore in the corresponding quarter of the previous financial year. Revenue rose to Rs 4,131.58 crore from Rs 3,073.67 crore a year earlier.

The results highlight the company's efforts to improve operational efficiency while expanding its value-focused ecommerce marketplace.

Customer Base and Shopping Activity Continue to Grow

Meesho's annual transacting user base increased 21% year-on-year to 284 million, reflecting continued growth in the number of consumers shopping on the platform.

The company also reported a 7% rise in annual purchase frequency, with each transacting user making an average of 10.4 purchases during the year. Net merchandise value (NMV), which represents the total value of goods sold through the platform, grew 23% year-on-year to Rs 12,911 crore.

First-time buyers also contributed to the momentum, increasing 16% quarter-on-quarter, according to the company.

Commenting on the results, Meesho CEO Vidit Aatrey said the performance demonstrated the strength of the company's operating model. He pointed to rising transaction volumes, stronger user engagement and continued growth in the number of consumers using the platform.

Festive Shopping Boosts Marketplace Performance

Meesho recorded strong activity ahead of the festive season. The company said its festive-aligned NMV increased 33% year-on-year during the 90-day period leading up to Dussehra.

The platform also continued to expand its seller ecosystem. The number of annual transacting sellers rose 60% year-on-year to 1.13 million, giving the company a broader selection of products and businesses to serve its growing customer base.

More than 4 lakh sellers are now part of Meesho's Content Commerce ecosystem. The initiative allows sellers and entrepreneurs to reach potential customers through creator-led product discovery, helping products gain visibility through content and recommendations.

AI Drives Improvements in Engineering Productivity

Artificial intelligence has become an increasingly important part of Meesho's technology and product development strategy. The company is moving towards an agent-led software development model, in which engineers use AI agents to support and accelerate development work.

Between March and September 2026, Meesho reported a 171% increase in engineering productivity, alongside a 73% rise in the number of experiments conducted.

According to the company, around 65% of its engineering pods now operate with a single engineer directing AI agents. This approach is intended to help teams develop and test ideas more efficiently.

Meesho plans to channel the efficiency gains from these initiatives into improving the shopping experience, strengthening seller services and accelerating product innovation.

Aatrey said the company's priority is to build a larger and more efficient marketplace while maintaining financial discipline and working towards sustainable free cash flow over the long term.

Cash Reserves Support Long-Term Growth Plans

As of September 30, 2026, Meesho reported a cash balance of Rs 7,048 crore. The company said this provides financial flexibility to invest in future growth opportunities while continuing to focus on operational efficiency.

The combination of higher revenue, lower losses and an expanding marketplace suggests progress in Meesho's efforts to balance growth with financial discipline.

With its customer and seller networks continuing to expand, the company is looking to strengthen its position in India's value ecommerce market. Its ability to maintain this momentum will depend on sustaining customer engagement, improving operational efficiency and translating its growing scale into stronger long-term financial performance.